2 Jul 2009

Recent trading down for Allied Farmers

6:14 am on 2 July 2009

Allied Farmers says recent trading is significantly behind expectations, blaming a reduction in farm merchandise sales to rural customers and dairy cow prices.

The company expects difficult trading conditions for the rural business in the early part of the 2009/10 financial year.

Corporate restructuring, which separated the company's rural business into a new wholly owned subsidiary, Allied Farmers Rural Limited, resulted in a one off gain of approximately $21 million.

Allied Farmers has also requested a valuation of its wholly owned finance subsidiary, Allied Nationwide Finance, for the purpose of assessing the value of goodwill.